Ridley Corporation has agreed to acquire Dyno Nobel's fertiliser business for $300 million, aiming to strengthen its position in the Australian agricultural sector.

Information on the Target

Ridley Corporation Limited, a publicly traded entity on the Australian Securities Exchange (ASX), has entered into a significant agreement to acquire the fertiliser division of Dyno Nobel, a renowned chemical and explosive manufacturer. The deal, valued at $300 million, marks Ridley’s strategic return to the fertiliser market, a sector where its target has a commanding presence, holding nearly 50% of the fertiliser market on Australia's east coast. This acquisition will consolidate their legacy brands and enhance their operational capabilities in providing agricultural solutions.

This transaction includes crucial assets that will bolster Ridley’s distribution networks and customer reach. However, it strategically excludes certain manufacturing operations to streamline focus on the core fertiliser business. The targeted acquisition also represents a shift for Dyno Nobel, allowing them to refocus on their primary business in blasting and explosives, following a challenging financial period.

Industry Overview in Australia

The Australian fertiliser industry is pivotal to the country’s agricultural sector, which is a critical component of the national economy. This sector has faced various challenges, including fluctuating commodity prices and environmental regulation